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Marnstream-Cand History repeating itself <By Ann M. Smith Before the federal gcvernment pro- ceeds any further with its proposed Goods and Services 'lbx (GSI'), it would be wise to take a dloser look at history. Unpopular as Finance Minister Michael Wilson's 9 per cent federal sales tax may be, it is by no means the first odious tax reform package to' corne before the Canadian taxpayer. The skeletal remains of former Liberal Finance Ministers'Edgar Benson and Allan MacEachen, for example, should have warned Wilson that anti-con- sumer and/or anti-small business tax reform packages are a quick route to early retirement. Incredibly, though, Wilson hasn't yet made the connection and now the Tory governiment finds itself in danger of ignoring the warn- ing that "those who choose to ignore history are doomed to repeat it. " According to John Bulloch, presi- dent of the- Canadian Federation of Independent Business, Wilson's recently introduced sales tax proposai is the most anti-consumner, anti-small business sales tax systemn in existence anywhere in the world. "No other country in the world has ever attempted to combine a multi- stage Goods and Services Tlii with a retail sales tax," said Bulloch. "This means confusion for the con- sumer, with some prices federal GST included... some prices GST extra... and then provincial retail sales taxes applied as a tax on the federal GSI'. Bu what if the clerk gets confused and accidentally mixes up the federal exemptions with the provincial exemp- tions? Pity the smali business commu- nity whichkc--aught in the paperwork nightmare of 9hiîlecting, administering and remitting two different consumer sales tax systems. " For example, Bulloch says, con- sumers in Newfoundland wili have to pay the new 9 per cent GSI' and then apply the 12 per cent provincial sales tax on the federal tai rate for a com- bined sales " tax rate of 22.08 per cent. - The GST will replace a 13.5 per cent tax on the sales of manufactured goods and broadens the scope to include ser- vices. Accordinig to, Bulloch, however, the GST rate should have been set at approximately 6 per cent in order to replace the revenue lost by eiminating the current sales tax on m1anufactured goods. The extra revenues are necessary to help seli the tax and will take the' form of sales tai credits, income tax cuts, exemptions and collection fees. "The big winners are the major exporters (primarily basic resource companies) and the federal govemnment which is putting in place a money machine that wilI sllow the 9 per cent rate to jumpl to Il per cent right after the next election," says Bullocb. "It is the consumer and the small business community that is getting clobbered." From the perspective of a national debate, this small business/consumer coalition sh uld prove to be a formi- dable oppor nt. Consumers, after ail, include a lze number of Canadians who simply cannot afford the extr costs associated with this GSI' For exampie, single, working mothers, firt-time home buyers and middle-class fantilies of four can ai oxet to feel an extra pinch from the Wilson tax initiative. And as Canada's leading job crea- tors, small business owners must be wondering when the seemingiy endiess burden of taxation and paperwork wili ever be alleviated. CFIB Feature Ser.dce WIM'4 REE MREss, WEDNESDAY, AUGUT23, 1989,. PAGE 27 P7eople ccm't i- Uow'ith4ut.being taxecL"' PROM PAGE 1 for. "People can't aven die without being taxed again»" says John Town, ownar of r1?own Funeral Chapel in Whitby. «I don't feel itsp po er to tax people after thyr ead. "As it is, when a caskat is purchased, there is btter than 22 per cent tax on that casket. The method of taxation is al wrong. There should be one tax and one tax only - that should be income tai. «Is it raally necessary to cover our expensive government? We should elect people not so exu- berant in their spending.» Books and magazines have not been taxed since the beginning of Confederation. But as of Jan. 1,. 1991, thay, too, will ho bit by the tax. "The cost of books has; gne up faster than the rate of inflation,- says Ken Roberts, administrator at the Whitby Library. "Fm not only concerned about the cost but also the availability. With the further taxes, publishi- ors will think three times before deciding te put it back into print. This will not only affect new books but also the c1assisxc. «We're at the point where itfs a fact of life, with us,» saya Lino Natoli, co-owner of The Daily Planet book, newspaper ag rnag1azxne store in the 'lib «I can see hardeovars taking a bit of a nosedive. After about four or five months people aren't going to worry a lot about it.» "~Oe it's in place, watch it go," warns Durham Centre MPP Ilan Furlong. «Manufacturera aron't ging te ho as competitive as we think. We're payiing a tai for something that is gai g te be badly thought out. I don'lt aee where it's goirlg te ho positive in any respect. It will have serbous impact on the -people's decision te spend. It's mind-boggling at hoest.» *Caiiidians do not understand the goods and service tai accord- ing to Ontario riding MI' Rene Soetens, a member of the House of Commons finance committee. NFU sees tax as regressive The faderaI government's plan to, introduce a mnenapar cent pods and services tax (GS i')bua -ery regressive" move abmed at furthering the interests cf the corporate sector at the expanse of farmera, workers and consumera, says Raye-Amne Briscce, exacutiva assistant (national issues) for the National Fermera Union (NFU). Respading te faderai Finance Minis'tar Michael Wilmsos announcement of the surtax, Brisce suggested that whule many of the exact details of the prpZ aaer ilunclear, -the facilitete the "restructurbng" of the Canadien economny. "The basic objectiva hohind this tai is supposadly te make Canadian manufacturera and exportera more compatitive in the global economy," noted Briseoe. Titis is the same rationale used by the faderai governimant in ita efforts te seil the Canada-US. free trada agreement (lETA>, and the recent GATT accord. But in ail these instances, the key factor in the 'succos? of these initiatives' is te, force down the' cost of Canedian labor, both diractly through lower farmn income and lower wageaý, and bndirectly through cuts; te social rrs . "MakIng Candan more 'compatitive means driving down the standard of livingof Canadians," ah. steted. er seeing another mavo bn the corporate game plan of restructuring the economy. Briscoe' said a 'Icomplate ra-evaluetion" of the tai and ts objectivas is needad prior to ita implementetion in 1991." Canadiens nead te have a national, critical discusson on the implicetens of the tai, and how it mashed with the reat of the arpoata agenda," she Briscoe noted that rural familias will h foroed te pay the tax, just as other consmera, but they wiil have the additional burden of paying taxes on transportation of the conimodities they purchase. It will alo complicate the duties of farrn women (Who do most of the bookkeeping on farm operations) by obliging tham te sort out what inputs and sales are subject to the talc and which ara not. "Unlika businesses who wil recaive breaks to accommodate SEE PAGE 39 LE¶TER. Premier should Iieed bis own advioe on tax To the edtor So Premier David Peteraon balievas the propoeed faderai gooda and services tai (GSi') threatens te drive people out of Ontarlo end that buyara of new homes wil ho among the hardest bit. "We've got te ho vyery, valy sensitive that we just dont t make it unattractive te ho here.- the Premier said. W. agra. wholeheartedly, but I have a prcblem with the. Premier's stetement inU lght of a imilr tax burden the. Ontario govrMentintroducad in the provincialbut inMay,. By imposing an education levy on new homes and increasing the land transfer tai, the Province is actua]ly forcing up the cost cf new homes aven highar for flirt-tima buyars than the faderai asr will. Peterson should head bis own advioe ta, the faderai Tories and take steps te withdrew the education lavy legiiation and ral back tha land transfer tai. Pardon the cliche, but people who liva in glass hous ehouldn't throw stones. Frank Gianntme Presmdent Toronto Homo Buflders Thpricialoii of t'he oppos ion is tat tcsiis another tax. î's not another tax, it is replaqing the old man*ifaturer's ta,» Eaid Soetens. Sootons said the niuie par cent is not a fixed amount. and eould stili be changed before the Janu- ar ,1990, introduction of the "At nine per cent the govorn- ment generates extra revenue which goos back to the popula- tion, » said Soetens. Ho said some of the manufac- turing companies in Whitb that will benafit under the GST are Sklar-Peppler and Lako 'Ontario steel Caô.Ltd. psy bas ,gtai.É Te finance IIAM which ho said will, committee wilI ho touirgeastorn and Western canada duriig the next yèar to get -views on the tax. The comniittee will notý corne to Durham Region although, Soe- tons haé arra goed a local' huai- nesa forum forWdnsa, et 20, to explain the tax to businesses. 'Tve written rny member of, Parliainent. andl71think, the Canadiazi people must niake themselves heard,» says' Gilchr- jat. «W., as a Canadian pople, simply'cannot afford it, says Morton. "This, is the straw that breaks the -cýamel's back. ,Ih'ave not seen.-a nythinMg in m3y 42 years thatwould gonerate as much resnonse and emotion.» THE REGIONAL MUNICIPALITY 0F-DURHAM NOTICE 0F PUBLIC MEETING Take notice that the Regional Planning Committee, consider at a meeting te be held on: wl TUESDAY, AUGUST 29,1989, AT 1000 A.M. PLANNING DEPARTMENT BOARDROOM 105 CONSUMERS DRIVE, WHITBY AN APPLICATION To AMEND THE TOWN 0F WHITBY OFFICIAL PLAN The amendment, as submitted by the applicat, proposes medium density residential consisting -of twenty-eight (28) condJominium, townhouses within--the Ste indicated on the map bellow. 6, o oe M u z t- t- CRAWYORTPg * o o o, DUNDAS ST. E. I SITE j w o e. KIROV CR. STOWN 0F SWHITBY Subsequentîy, the Régional Council recommnendlation et the Planning meeting te, be held on: wiII consider the Commttee ai a WEDNESDAY, SEPTEMBER 6,1989, AT 9:-00 A.M. COUNCIL CHAMBERS, REGIONAL HEADQUARTERS BUILDING 605 ROSSLAND ROAD EAST, WHITBY The report related te the amendment application is available for inspection in the* offices of the Planning Department, 105 Consumners Drive, Whitby, or by cailing Ms. Kay Dryden, Planning Department (Whitby) 668-7731 / (Toronto) 686-1651. Requests te make a presentation before the Planning Committee conceming the amendment application mnust be forwarded te Dr. M. Michael, M.C.I.P., Commissioner ef Planning, 105 Consumers Drive, Whitby, Ontauio, LUN 6A3, and should be received by Friday preceding the meeting. Requests te make a presentation before the Regional Council conceming the amendmert application must be forwarded te the Regionai Cîerk, Regienal Fleadquarters Building, 605 Rossiand Road East, Whit:by, Ontario, LUN 6A3, and should be received 48 heurs prier te, the Regional Ceuncil meeting. FILE NO. 88-117IWW Gary Herrema Regienal Chairman C.W. Lundy, A.M.C.T. RegionalCl cerk I -% 1 mý nmr m